The real domain of Bitcoin could be 90%

The real domain of Bitcoin could be 90 percent

A new report from Arcane Research shows that the real domain of Bitcoin is more than 90 percent instead of 70 percent, as indicated  in CoinMarketCap.

Because it is important

Bitcoin is the world’s largest cryptocurrency by market capitalization and controls a large part of the trading volume in cryptocurrency markets. In general, most people are aware of how  Bitcoin  has always been considered the dominant cryptocurrency, but, in recent years, the situation changed slowly thanks to the spread of alternative currencies.

Despite the fact that Bitcoin still dominates the general market, its market position has taken some strokes along the way. Until February 2017, it was above 85 percent, except for some rare exceptions, but when altcoins prices increased, Bitcoin dominance fell to 33 percent in January 2018.

These figures are calculated by calculating the percentage of the cryptocurrency market that can be attributed to Bitcoin (BTC), which is the relationship between the market capitalization of Bitcoin and the rest of the cryptocurrency markets.

However, these values ​​do not reflect the true value of Bitcoin, since some variables that could make this figure vary greatly are not taken into account.

According to a new report by Arcane Research, which takes liquidity into consideration when calculating the domain of the Bitcoin market, a more representative figure of reality would be around 90 percent. Liquidity is a fundamental variable, since market capitalization is easily inflatable by creating a new cryptocurrency, and most alternative currencies have a very low liquidity level, since it is unlikely that they will sell a large amount of Those in the bags.

In addition, Bitwise Asset Management performed two similar analyzes based on data from 10 bitcoin exchanges and CoinMarketCap studies. Stable currencies were not considered in the studies.

Other interesting metrics

These data points highlight how difficult it is to dethrone Bitcoin and how the market also perceives it. The BTC domain, which  currently  stands at approximately 68 percent, has steadily increased since January 2018 and in the last three months, has increased by more than 25 percent, from 51 percent to 65 percent.

Another interesting metric to look for is the profitability of each cryptocurrency. Pro-crypto economist Alex Krüger  posted  data from Into The Block on Twitter   , a blockchain analysis firm enhanced by machine learning, which shows that up to 79 percent of bitcoin addresses make a profit based on the average price at which they were acquired the tokens

On the contrary, it is an altcoin bloodbath.

This affects the market as merchants, institutional investors and entrepreneurs will always choose the most liquid and extended asset for their business choices, reflecting the fact that more and more people believe that Bitcoin is on its way to becoming an asset. Safe haven


Please enter your comment!
Please enter your name here